Rebuilding credit but need help answering questions

[Anonymous]

Closed or open on a charge off makes no difference it will still be part of your utilization. You can dispute status they will simply change it to closed.

[User470766]

Thank you all for your help. I think the best solution and the best option for me is to go ahead and start to pay or settle on those accounts that were charged off and then have them change the status to paid. I think I might be able to take out a personal line or credit at my local union and pay for my current balance plus the negotiated balance and then just seek to have that one payment for the personal loan. I think I could negotite the 7000 down to 2500 rather easy. 

[sarge12]

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@User470766 wrote:

Thank you all for your help. I think the best solution and the best option for me is to go ahead and start to pay or settle on those accounts that were charged off and then have them change the status to paid. I think I might be able to take out a personal line or credit at my local union and pay for my current balance plus the negotiated balance and then just seek to have that one payment for the personal loan. I think I could negotite the 7000 down to 2500 rather easy. 

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At least make a pay for delete offer...all they could do is say no!

[User470766]

Can I dont that even if I plan to settle for substantially less ? I always thought that was only for a pay in full. 

[SunriseEarth]

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@User470766 wrote:

Yes I'm aware of this as a matter of fact they have all been sold to various collection agencies more than 3 years ago. My current utilization should not include amounts that have been charged off and sold to a collection agency. This has me confused... Yes I'm aware that the debt can creep up at any point and I've been sued already for other that I have since paid. 

i have 4 accounts currently in good standing and current ( these I've opened to rebuild 2 years ago ). They total 2700 in available credit with 1900 used. 

But them hem tere are 5 more that have been closed for years bite appear open in myFICO credit report and are going against my utilization and bringing my total active debt to 9k instead of the 1900 active debt. Credit karma shows these 5 old accounts as closed and only says I have a total of 1900 in debt. 

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It is possible that the OC has retained the debt and is using a CA to administer the collection.   This happened with my COs from Cap One.    If the debt was sold to a CA, then the original TL should reflect a zero balance, since you do not owe them anything.  Would you be willing to share who the OCs were on your CO accounts? 

And unfortunately, CO accounts are factored into your UTIL.   You could look into doing a PFD and see if they are willing to settle.   However, even if the TL remains, a settled CO with a zero balance will improved your scores.   It will improve your UTIL and stop the monthly reporting.  

[User470766]

Yes I can share the accounts. I have about 5 accounts, 2 Citi, 1 Chase, 2 Cap one, 1 BOA. They all add up to about 7K, however they are all with CA that have proposed large discounted settlements. Most recently I received a 1099 that said Citi had forgiven $4000 an that was the amount owed on one account, does this mean it has trully been forgiven ? Because that account is not being reported anywhere on my Credit report.